The Eric Stewart Group Blog
Trusted resource for local and national real estate news and trending topics, and everything you need to know about the buying and selling process.
What does the word “contingency” mean in sales, especially in real estate? Contingency is a simple word from Latin roots meaning to hold together. Wait, if it means to hold together, why is it known as a way out of a contract? Well, consider buying real estate without any contingencies. Would you purchase a home if you couldn’t inspect it, do an appraisal, or check for termites? Or have a loan contingency if you need to get a mortgage? No, hopefully you wouldn’t. You need the contingency to hold the contract together even though, if a contingency isn’t fulfilled, the contract will die.